Australian dollar (AUD) wavers amid shifting risk sentiment
The Australian dollar (AUD) initially fell on Friday as an anxious market mood pressured the risk-sensitive currency.
However, an improvement in risk appetite helped AUD regain ground against its weaker peers in the evening.
Turning to today, the latest Australian inflation gauge is due out. Could a slight uptick in month-to-month price growth be enough to give AUD a lift?
New Zealand dollar (NZD) choppy as risk appetite wobbles
The New Zealand dollar (NZD) also fluctuated on Friday as market risk appetite wavered.
Market-moving New Zealand data is thin on the ground today. Therefore, the ‘kiwi’ could face muted movement.
Pound (GBP) rebounds from budget-induced selloff
The pound (GBP) recovered from its post-budget slump on Friday as the anxiety in UK markets eased.
In addition, a pullback in Bank of England (BoE) interest rate cut bets – due to potentially inflationary measures in the Autumn Budget – lent Sterling support.
Sterling could see a quiet start to this week’s session amid a lack of UK data ahead of the looming BoE interest rate decision.
Euro (EUR) retreats as investors pocket profits
The euro (EUR) retreated from multi-week highs on Friday as a lack of Eurozone data left the single currency without much support.
Profit-taking may have also been a factor in EUR’s downside, as investors sought to cash in on the currency’s impressive weekly gains.
Later this evening, the Eurozone’s final manufacturing PMI could put modest pressure on the euro, if it confirms another contraction in factory activity last month.
US dollar (USD) hit by staggeringly weak payrolls print
The US dollar (USD) had a volatile end to a volatile week on Friday, after a shockingly weak US non-farm payrolls report.
The US economy added just 12,000 jobs in October, a fraction of September’s 223,000 and well below forecasts for 113,000. While the recent hurricanes and strikes at Boeing were a key factor, the weak payrolls print still dented USD.
Today could be the calm before the storm for the US dollar. With the US presidential election tomorrow and the Federal Reserve policy decision on Friday morning, this week could bring more volatility for the US dollar.
Canadian dollar (CAD) mixed amid USD volatility
The Canadian dollar (CAD) was uncertain at the end of last week’s session. While strong weekly gains for oil supported the crude-linked ‘loonie’, the volatility in the US dollar undermined CAD.
Looing forward, Canadian data is in short supply today. Therefore oil price movements could drive the Canadian dollar.
Data releases
10:00 AUD TD-MI Inflation Gauge (Oct)
19:00 EUR Manufacturing PMI (Oct)